0001628280-26-019614
SEC filingRepublic Airways Holdings Inc. (RJET) reported strong FY 2025 results in its 10-K filing dated March 18, 2026, for the period ending December 31, 2025. Revenues reached $1.68B, up 13.7% YoY from $1.47B in 2024, driven by an 18.2% increase in block hours to 699,313 and 14.6% more departures at 371,205, bolstered by the November 2025 merger with Mesa Air Group, Inc., adding capacity under a new 10-year United Airlines CPA. Operating income rose 22.8% to $168.3M, with total operating expenses at $1.51B (up 12.8% YoY), reflecting higher wages ($762.6M) and maintenance ($320.9M). Net income grew 18.0% to $76.2M from $64.6M, with diluted EPS steady at $2. The merger contributed $120.2M in non-cash consideration, boosting fleet to 275 aircraft and goodwill to $122.5M. Balance sheet strengthened with total assets at $3.28B, equity $1.33B, and operating cash flow surging 42.4% to $322.0M. Liquidity stood at $319.9M in cash and marketable securities. Forward-looking, the company eyes 24% block hour growth in 2026 post-merger, with long-term CPAs through 2037 providing revenue stability amid pilot staffing and maintenance cost pressures.
Republic Airways delivered robust FY 2025 performance with revenues of $1,676.5M, up 13.7% from $1,474.0M in 2024, fueled by 18.2% block hour growth to 699,313 and merger-driven capacity. Operating income climbed 22.8% to $168.3M, despite 12.8% higher expenses at $1,508.2M. Net income rose 18.0% to $76.2M (4.5% margin) from $64.6M (4.4% margin), with diluted EPS at $1.87 vs. $1.62. The November 2025 Mesa merger added 67 aircraft, cash of $22.8M, and a new United CPA, enhancing scale. Total assets hit $3.28B, up from $2.77B, with equity at $1.33B.
Revenues primarily from CPAs: American Airlines $723.6M (43%), Delta $409.7M (24%), United $517.5M (31%). Growth from 14.6% more departures (371,205) and higher utilization (9.7 hours/day). Regional jet services $1,346.4M; embedded lease revenue $304.4M. Pass-through reimbursements recorded gross. LIFT Academy tuition $23.2M. Merger added post-November revenues of $42.2M from Mesa.
Operating margin improved to 10.0% from 9.3%, driven by revenue leverage despite wages up 12.6% to $762.6M (51% of op ex) and maintenance +3.1% to $320.9M. Depreciation $126.3M (+7.9%). Executive/merger costs $47.1M impacted profitability. Adjusted EBITDA $341.7M (20.4% margin), up 32.9% YoY. Tax rate 32.8% vs. 25.7%.
Operating cash flow $322.0M (+42.4% YoY), supporting $396.9M capex. Investing outflow $350.9M (aircraft purchases). Financing inflow $54.7M (debt proceeds $299.4M). Cash/marketables $319.9M (19% of revenues). Debt $1.09B, current $202.0M. Working capital deficit $33.6M, but liquidity solid. Post-merger total liabilities $1.95B.
Expects 24% block hour growth in 2026 from merger. Fleet to 280 operational (29 E175 orders through 2029). Long CPAs (avg. expiry 2031) shield fuel/loads volatility. Risks: pilot retention, maintenance costs rising with 13.0-year fleet age, labor CBAs amendable 2027. Pursuing growth via CPAs, LIFT Academy expansion.